All businesses are run with one goal in mind, which is to reduce costs and maximize sales. So, you need to make many decisions that consider all factors to make your business successful. One such business decision is to have a Point of Sale (POS) system for smooth operations. POS systems play an important role allowing merchants to manage inventory, customer base, invoices, and transactions. Due to digitization, cloud-based POS are more famous than traditional methods of POS systems, as one can easily access the same from any location and at any point of time.
If you plan to migrate to a cloud POS system, then it’s time to move ahead with cloud POS. Let’s go through this informative blog to know more about both kinds of systems, including cloud based POS and traditional POS.
What Exactly is a POS?
POS software is a comprehensive system that helps numerous businesses manage and streamline sales transactions. It consists of various features like inventory management, customer relationship management, and reporting tools, that together make the sales process smooth. The customer executes the payment for products or services at POS, which is also the point of sale where sales taxes may become due.
This digital platform ensures streamlined transactions between the customer and the retail store at the point of purchase.
What is Cloud Based POS?
Cloud based POS consists of hardware devices like cash registers and barcode scanners that connect with a central server and are used via the Internet. This server is located in a remote data center instead of located on-site. The sales data obtained is transmitted in real-time from the hardware devices to a server where the information is stored for further use.
Why Choose Cloud-Based POS
- The main advantage of cloud-based POS software is that it one can access it from any computer or mobile device with an internet connection.
- This is done from mobile devices and track sales over time while you’re in another part of the country. This data is all encrypted so that your information is safe from hackers.
- An added benefit of a Cloud POS system is that one can expand and manage the same from the cloud. Unlike traditional systems that are designed for a particular number of units, Cloud systems are designed for any markup size or even multiple outlets.
- Businesses using cloud POS can easily download and install apps for free on their smartphone or tablet. Because you can also use voice recognition software, so you let the customers simply say what they want to order.
What is Traditional POS?
Traditional POS systems are physical systems installed at a business and are managed by the industry. To access it, there is no need to have internet access. Traditional or on-premise POS systems are installed and managed by businesses, as opposed to cloud-based POS systems, which though managed by the company are made available to customers.
Advantages of Traditional POS
The following features have the key highlights of traditional POS system:
- Traditional POS works without the Internet and one can access it without the internet connection.
- On-premise POS typically has one-time fees and maintenance costs. The entire system is designed and customized as per your business requirements. One has to pay one time for implementation/
- Traditional POS is stable and straightforward and is used at coffee shops, fine-dining restaurants, fast-food chains, and retail stores.
Cloud POS vs. Traditional POS: Detailed Comparison
Cloud POS is a well-proven form of digital invoicing system and one of its main benefits is flexibility, unlike traditional POS which can be accessed at a particular place only.
1. Price
Traditional POS: The cost associated with it includes hardware, software, and payment processing services cost which need to be paid at the time of purchase. Plus, one has to spend on software and hardware upgrades.
Cloud-Based POS: The software updates are included as part of the monthly subscription plan and one can update the software at any point in time without any longer.
2. Maintenance
Traditional POS: The team of experts looks for the solutions to your problems so that you can focus on other important tasks.
Cloud-Based POS: Maintenance is done online and upgrades are automatically installed within the system. Real-time updates ensure that your system meets the industry standards and security.
3. Data Storage
In Traditional POS, the data is stored locally and it has a closed network that protects against hackers. To safeguard business data, IT vendors deploy industry-standard security protocols.
Cloud based POS systems on the other hand store data remotely on remote servers. This gives an assurance that you have backups of your data and it remains unaffected by any physical damage.
Cloud POS vs. Traditional POS: Key Differences
Go through the tabular information provided below to know the key differences between cloud POS and traditional POS.
| Cloud POS | Traditional POS | |
| Data Collection | Data is stored online and one can access any piece of data at any time. | Local servers, a part of a closed central network, store the data. One has to be available physically to retrieve data. |
| Data Access | One can access data through various touchpoints, you just need a compatible device and an internet connection to access data. | Due to system failure, breakdown, or other danger, users will not be able to access data without logging into the local servers. Backups are frequent, requiring more space. |
| Payment | Since data is stored in the cloud, so it is less expensive | Setting a traditional POS comes with a higher upfront and maintenance cost. So it is more expensive than Cloud-Based POS. |
| Hardware | Basic requirements include mobile devices, tablets, or similar devices with internet connection. | Basic requirement is hardware |
| Software Updates | Regular software updates are provided because it’s a web-based pos system. | During software updates, technicians perform on-site work, and manual updates will cause a temporary pause to its usage. |
| Maintenance | Online maintenance | Offline maintenance |
| Data Security | Deploy safety features to prevent data loss. | Because of physical presence, chances of data breaches are very rare. |
Final Words
Do you hunt for the best POS solution for your business? So a Cloud POS is a far better option than a traditional POS. Being one of the leading providers of cloud tech solutions, Kodehash Technologies, helps you build your POS solutions. Get started with POS systems Book your demo with us and learn more about our integrated services for retailers including accounting, billing, e-commerce, and inventory management solutions.
Call us now to revolutionize your sales process!